Abu Dhabi, (Business News Report)|| Abu Dhabi Polymers Co Ltd (Borouge) has promised shareholders to implement a strong dividend policy after listing the company on the Abu Dhabi Stock Exchange.
Hazeem Al Suwaidi, CEO of Borouge, said that his company aims to achieve a return on shareholders from free distributable cash flows, while maintaining an investment grade credit file, after listing on the Abu Dhabi Stock Exchange.
He stressed that the company’s dividend policy will depend on the semi-annual payments, which take place in March and September.
The company expects to pay a fixed dividend of 3.5 billion dirhams in 2022, including 1.2 billion dirhams for the second quarter and 2.3 billion dirhams for the second half of 2022, he said.
He added, “We intend to pay fixed dividends of at least 4.7 billion dirhams in 2023.”
The company achieved revenues of 20.2 billion dirhams, and profits of 5.5 billion dirhams during 2021.
Al Suwaidi expected a strong increase in the demand for Borouge products, due to major global trends with the presence of new applications.
Al Suwaidi announced on May 19 that the company’s initial public offering aims to enhance the company’s available liquidity and access new sources of capital.
He pointed out that the offering contributes to accelerating the company’s business and supports the completion of expansion plans, business growth and productivity.
The offering would contribute to providing great profit opportunities for investors, and enhancing their role in pumping new investments into the growth of the local economy, he said.
In a separate context, ADNOC Abu Dhabi Petroleum will offer the shares of Borouge PLC, Abu Dhabi Creditor, for public subscription.
ADNOC Abu Dhabi and its strategic partner, Borealis, announced their intention to offer a 10% stake in the Abu Dhabi Plastics Company Limited (Borouge Plc), a petrochemical joint venture, for an initial public offering on the Abu Dhabi Stock Exchange.
Meanwhile, subscription for the offering shares will start on May 23, 2022, subject to obtaining approvals from the relevant regulatory authorities.
Borouge was established in 1998 as a joint venture between ADNOC Abu Dhabi and Borealis to combine the strengths, experience and advantages of both companies.
